Your directors are pleased to present the 45th annual report and the Company's auditedfinancial statements (standalone and consolidated) for the financial year ended March 312017.
The financial performance of the Company (standalone and consolidated) for thefinancial year ended March 31 2017 is summarized below:
| || || || ||(Rs. in lakhs) |
| || |
| ||12 months ended 31.03.2017 ||12 months ended 31.03.2016 ||12 months ended 31.03.2017 ||12 months ended 31.03.2016 |
|Turnover/Income (Gross) ||135703.17 ||130236.02 ||177179.61 ||191292.81 |
|Profit before Finance charges Depreciation and Taxation ||21231.00 ||18784.42 ||33752.06 ||45121.24 |
|Less: Finance charges (excluding amount capitalized) ||5008.88 ||3172.36 ||8651.18 ||8767.57 |
|Profit before Depreciation and Taxation ||16222.12 ||15612.06 ||25100.88 ||36353.67 |
|Less : Depreciation ||3707.61 ||3392.47 ||9040.00 ||8371.42 |
|Profit for the year after Depreciation ||12514.51 ||12219.59 ||16060.88 ||27982.25 |
|Less : Provision for taxation - Current tax ||2778.22 ||2700.00 ||4267.43 ||6651.04 |
|- Deferred tax ||1438.78 ||(206.19) ||1673.70 ||(3044.56) |
|- MAT credit entitlement ||- ||(2030.00) ||(587.21) ||(5278.97) |
|Profit after Tax ||8297.51 ||1 1755.78 ||10706.96 ||29654.74 |
|Minority share - (profit) / loss ||- ||- ||(585.56) ||(1290.54) |
|Surplus/deficit of subsidaries sold/written off during the year ||- ||- ||98.20 ||- |
|Balance brought forward from last year ||147039.41 ||141857.56 ||190929.11 ||169138.84 |
|Profit available for Appropriation ||155336.92 ||153613.34 ||201148.71 ||197503.04 |
|Appropriations || || || || |
|Dividend on Equity Share Capital ||2529.43 ||4215.71 ||2529.43 ||4215.71 |
|Corporate Dividend Tax ||514.93 ||858.22 ||514.93 ||858.22 |
|General Reserve ||- ||1500.00 ||- ||1500.00 |
|Surplus carried to Balance Sheet ||152292.56 ||147039.41 ||198104.35 ||190929.1 1 |
| ||155336.92 ||153613.34 ||201148.71 ||197503.04 |
ECONOMIC AND BUSINESS REVIEW
The global markets have stabilized post the Brexit event and US elections last year.According to the IMF the world is expected to grow by 3.5% in 2017 led by pickup inadvanced economies as well as in emerging economies. Advanced economies Rs.growth would beled by the USA which is expected to benefit from fiscal policy easing. Europe and Japanwill also benefit from a cyclical recovery in global manufacturing and trade that startedin the second half of 2016.
India's GDP is expected to grow by 7.2% in 2017 as it will be affected bydemonetization event which happened in November 2016. However GDP growth is expected topick up to 7.7% in 2018 led by favourable macroeconomic scenario political stabilityongoing structural measures like passage of GST etc. Thus India is placed on a sweet spotand is gaining momentum both in domestic and international markets.
REVIEW OF OPERATIONS
The performance of the Company has to be viewed as satisfactory in the overallperspective of cataclysmic changes the power business has been subjected to period endadjustments in respect of foreign currency assets and liabilities and significantvolatility in the input costs and prices of Manganese Alloys while the Sugar business heldits head high during the year under review. The Company however envisages that long termsustainability can only be achieved with a paradigm shift of focus centering aroundindustrial consumption of power monetization of idle or stranded operating assets andstiff conservation of resources.
Turnover for the year 2016-17 stood at Rs.135703.17 lakhs compared to Rs.130236.02lakhs in the previous year and the profit after tax stood at Rs.8297.51 lakhs reducedfrom Rs.11755.78 lakhs in the previous year.
The Company witnessed significant volatility in both Manganese Alloy and Chromium Alloybusinesses. While the conversion arrangement with Tata Steel Ltd. (TSL) providedstability and decent performance in respect of Ferro Chrome Silico Manganese wassubjected to wild swings in manganese ore costs as well as sales realizations. The overallperformance in this business was significantly better than that in FY 2015-16 wherein theCompany was able to secure better value addition for captive power than that obtainedthrough sales on power exchange during the year. Accordingly the Company has focused onhigher production of Manganese Alloys and higher conversion volume of Ferro Chrome whichwill continue through FY 2017-18 and beyond.
During the period under review the Power business reflecting the sector trendremained quite subdued. The power dispatches in Telangana and Andhra Pradesh were severelyimpacted by grid curtailments and were further impeded by low power exchange prices. ThePower plants in Odisha trailed the weak trend in exchange prices being the only means ofdispatch of power and so operated at low plant load factor (PLF) with the second 60 MWUnit remaining idle throughout the year. Captive consumption of power in the production ofmanganese alloys and chrome alloys (under Conversion arrangement with TSL) mitigated thesituation to some extent. The Company was able to source the coal at reasonable rates andremain competitive to effect sales through power exchange principally aiming at recoveryof a part of fixed costs and maintaining generation at near optimum loads.
The power segment comprises technical support fee forming part of the O & Mservices fee of the Zambian company to the extent of interim services prior to the 300 MWpower plant achieving COD. This fee will form a separate revenue stream from FY 2017-18onwards.
The Company's sugar business was robust both in terms of revenues as well as profits inFY 2016-17 reflecting the buoyancy in this sector. This is expected to sustain during FY2017-18 as well.
Pursuant to the recommendations of the Board of directors and the approval ofshareholders at the 44th Annual General Meeting (AGM) the Company allotted bonus sharesin the ratio of 1:1 (i.e. one bonus equity share of Rs.2/- each for every one existingequity share of Rs.2/- each) to all the shareholders of record as on September 3 2016(record date). Consequently the share capital of the Company increased to 178575482equity shares of Rs.2/- each aggregating to Rs.357150964/- from 89287741 equityshares of Rs.2/- each aggregating to Rs.178575482/-.
Given the weak trend in the power business and the need to conserve resources yourBoard of directors considered it fit to prune the dividend outgo and recommended adividend on the equity shares at Rs.1/- per equity share of Rs.2/- each for the FY 2016-17on the expanded share capital due to bonus issue of shares subject to shareholdersRs.approval at the ensuing AGM. The aggregate dividend payout amounts to Rs.16.86 croresexcluding corporate dividend tax of Rs.3.43 crores.
No amounts were proposed to be transferred to Reserves for the period under review.
The Company has not accepted any deposits from Public and as such no amount on accountof principal or interest on deposits from public was outstanding as on the date of balancesheet.
LISTING OF EQUITY SHARES
The securities of the Company are listed at National Stock Exchange of India Limited(NSE) and BSE Limited (BSE).
During the year under review the Company issued and allotted 89287741 fully paid-upbonus equity shares of Rs.2/- each and the same have been listed on the NSE and BSE onSeptember 16 2016.
Further the Company has no equity shares carrying differential rights.
INDIAN ACCOUNTING STANDARDS
The Ministry of Corporate Affairs (MCA) vide its notification Official Gazette datedFebruary 16 2015 notified the Indian Accounting Standards (Ind AS) applicable to certainclass of companies. Ind AS has replaced the existing Indian
GAAP prescribed under Section 133 of the Companies Act 2013 read with Rule 7 of theCompanies (Accounts) Rules 2014.
Your Company has been covered under Ind AS with effect from April 1 2016. Thereconciliation and description of the effect of the transition from IGAAP to Ind AS havebeen provided in the notes to accounts to the financial statements.
The Company has Indian and overseas direct and step down subsidiaries.
Consolidated financial statements have been prepared by the Company in accordance withthe requirements of Ind AS 110 issued by MCA and as per the provisions of the CompaniesAct 2013.
As per the provisions of Section 136 of the Companies Act 2013 separate auditedfinancial statements of subsidiary companies are made available on the Company's websitewww.nbventures.com and the Company shall furnish a hard copy of annual reports of thesubsidiary companies to any shareholder on demand at any point of time.
The annual accounts of the subsidiary companies shall also be available for inspectionby any shareholder in the registered offices of the holding Company and of the subsidiarycompanies concerned.
A report on the performance and financial position of each of the subsidiariesassociates and joint venture companies included in the consolidated financial statementspursuant to Rule 8(1) of Companies (Accounts) Rules 2014 is enclosed as Annexure - 1 tothis report.
Statement containing the salient features of the financial statement of subsidiariesand associate Companies for the year ending March 31 2017 in Form AOC-1 (Pursuantto first proviso to Sub-Section (3) of Section 129 read with Rule 5 of Companies(Accounts) Rules 2014) is enclosed at the end of the notes on Accounts to FinancialStatements.
OVERSEAS CORPORATE STRUCTURE
The Company has overseas investments in Coal Mining Power Generation Operation &Maintenance Services and Commercial Agriculture spread across different geographicalregions. The Company has created different intermediate holding companies being whollyowned subsidiaries in Singapore to cater separately to; Power Generation through NavaBharat (Singapore) Pte. Ltd; O&M Services through Nava Energy Pte. Ltd; and CommercialAgriculture through Nava Agro Pte. Ltd. This structure will facilitate investment pursuitsin a focused manner aside from induction of investors at appropriate time. All theinvestments henceforth will be routed through respective wholly owned subsidiaries inSingapore.
NAVA BHARAT (SINGAPORE) PTE. LIMITED (NBS)
NBS a wholly owned subsidiary of the Company in Singapore was the investment arm andholding Company of the overseas strategic investments while rendering trading services forferro alloys within the Group. Henceforth NBS will control the investments in coal andpower generation principal investment being in Zambia.
MAAMBA Collieries UMITED (MCD
MCL is a step down subsidiary of the Company in Zambia with NBS holding 64.69% of theequity stake while the balance 35.31% is held by ZCCM Investments Holdings Plc and others.MCL has the largest coal concession in Zambia and has revamped the Coal Mine operationsand established a 300 MW (2 X 150 MW) Coal Fired Power Project at a net capital outlay ofUSD 843 million. The means of finance include long term debt of USD 590 Million Equityfunds of USD 253 Million from Sponsors and pre-COD power sale revenues. The 300 MW PowerPlant was commissioned in phases by December 2016. Both the Units have since stabilizedMCL is awaiting the approval of the Lenders and their Technical Advisors for Take Over ofthe Power Plant from the EPC Contractor and declare Commercial Operations Date (COD). Asthe Power Plant has been in a state of readiness COD will be declared in consultationwith all the stake holders in accordance with the prevailing IFRS regulations.Accordingly the 300 MW Power Plant operations will form part of Consolidated Financialsfor a part of FY 2018 and thereafter.
For FY 2017 MCL made an operating profit of USD 2296998 (after tax) on a totalincome of USD 10178987 aided by Deferred Tax benefit while the high grade coaloperations have been flat owing to limited off take opportunities in and around Zambia.The Coal mining operations will get a fillip upon commencement of commercial operations inthe 300 MW Power Plant which requires about 1.6 Million tons of coal per annum. The Coalmine has substantial SAMREC compliant coal resource which can address all the fuelrequirements of not only the 300 MW Power Plant but also its expansion schemes forconsiderable length of time.
NAVA BHARAT LAO ENERGY PTE. LIMITED (NBLE)
NBLE Singapore was 100% owned by NBS and NBLE was holding 70% stake in Namphak PowerCompany Limited (NPCL) the Hydro Power Project Company in Laos. During FY 2016-17 NavaBharat (Singapore) Pte. Ltd (NBS) exited from the Laos Hydro Power Project by divestingits entire stake of 100% in NBLE and so indirect stake of 70% equity in the projectcompany (NPCL) in favour of Chaleun Sekong Group (CS Group) of Laos. The sale process ofNBLE to CS Group was completed in two tranches in FY 2016-17 whereby both NBLE and NPCLceased to be subsidiaries of NBS and of Nava Bharat Ventures Limited.
NAVA ENERGY PTE. LIMITED SINGAPORE (NEPL)
NEPL Singapore is a wholly owned subsidiary (WOS) of the Company and is theintermediate holding company in Singapore engaged in O&M services of power plantsabroad. It will avail technical support from Nava Bharat Ventures Limited the HoldingCompany with requisite expertise and operating experience of power plants and supplementit with technical support from Original Equipment Manufacturers (OEMs) or EPC contractorsas required.
NEPL has secured the O&M contract from Maamba Collieries Ltd (MCL) for the latter's300 MW coal fired power plant in Zambia. For due performance of obligations under theO&M contract NEPL has inter alia entered into a Long Term Technical Support Agreementwith the Indian Holding Company which has also extended performance guarantee and bankguarantees as required under the O&M Contract with MCL. Your Company considers this asan opportunity to leverage its rich experience in power plant operations gainedassiduously over the last three decades while a distinct revenue stream is established inO&M services.
NEPL has set up a Zambian company Nava Energy Zambia Limited (NEZL) as its WOS tofacilitate compliance with local laws in engagement of subcontractors and employees todischarge the O&M Contract obligations.
The Company expects that its O& M experience in MCL will establish its foot printin this emerging service which it can leverage for further opportunities in this space.
NAVA ENERGY ZAMBIA LIMITED ZAMBIA (NEZL)
Nava Energy Zambia Limited is a Zambian Step down subsidiary and a WOS of NEPL. NEZLhas engaged qualified and experienced personnel and Sub-contractors in Zambia. It is setto render the O&M Services for the 300 MW Power Plant of MCL from the CommercialOperations Date expected shortly for an initial period of 10 years. In order to achievesmooth transition from the construction phase to operations phase NEZL has establishedits presence at the site for the last one year to participate in all the commissioningactivities.
During the Financial year 2017 the O&M operations at MCL did not commence and soNEPL/NEZL have rendered only interim services by themselves and through sub-contractors asprescribed under the O& M Contract.
NAVA AGRO PTE. UMITED SINGAPORE (NAPD:
NAPL is a wholly owned subsidiary of the Company and is intended to be the intermediateholding company in Singapore to pursue investments in commercial agriculture and relatedbusinesses initially in Africa. It is proposed to transfer the investments currently inTanzania held by NBS into this holding company.
Kawambwa Sugar Limited (formerly Kariba Sugar Limited) (KSL) is a Zambian company whichhas been allocated 10000 ha of land by the Government of Zambia to pursue Sugar businessinitially. During the year under review NAPL acquired 100% shareholding of KSL. Atpresent KSL is engaged in Environmental Impact Assessment Study and Detailed Feasibilityevaluation for establishing a Sugar manufacturing plant on the land concession. Anappropriate investment decision will be taken by your Board after evaluating the findingsof EIA and the DPR.
KAWAMBWA SUGAR LIMITED ZAMBIA (KSL) (formerly known as Kariba Sugar Limited)
Kawambwa Sugar Limited (KSL) was incorporated in Zambia and became a subsidiary of NAPLduring FY 17. It has secured approval of the Government of Zambia for allocation of 10000Ha of land in Luena Farm Block North Western province of Zambia to set up an IntegratedSugar Complex.
Kawambwa Sugar Limited has engaged Consultants to carry out Environmental ImpactAssesment study and Detailed Feasibility and an appropriate investment decision will betaken shortly.
NB TANAGRO UMITED TANZANIA (NBTD
NBTL is a Step down subsidiary in Tanzania and has been pursuing investment in OilPalm. NBS holds 80% in NBTL while the balance 20% is held by National DevelopmentCorporation of Tanzania. NBTL currently awaits allocation of land from the Government. Theshareholding of NBS is proposed to be transferred to NAPL as part of restructuring ofinvestments in Agri space.
NB RUFIJI PVT. UMITED TANZANIA (NBRPD
NBRPL is another step down subsidiary in Tanzania pursuing investment in Oil Palm.NBRPL is a WOS of NBS and is engaged with Rufizi Development Authority for facilitatingland allocation following which investment plans will be drawn up. The shareholding of NBSis proposed to be transferred to NAPL as part of restructuring of investments in Agrispace.
KARIBA INFRASTRUCTURE Development UMITED ZAMBIA (KIDL)
As the proposed multi facility Economic Zone project could not be established inZambia KIDL applied and was struck off from the register of companies and thereforeceased to be in existence.
NAVA BHARAT ENERGY INDIA LIMITED (NBEIL)
NBEIL is a step down but wholly owned subsidiary of the Company with 26% of equitydirectly held by NBVL and 74% being held through Nava Bharat Projects Limited (NBPL).
Nava Bharat Energy India Limited (NBEIL) operated the 150 MW Independent Power Unit inTelangana on merchant basis with an average PLF of 53.71% during FY 2016-17. During theperiod under review the grid off take was dismal and the alternative power market on IEXwasn't remunerative. The situation is aggravated owing to increase in e-auction coalprices with no pass through arrangement.
NAVA BHARAT PROJECTS LIMITED (NBPL)
NBPL is a WOS of the Company and is engaged in project management supporttrading/export of goods or equipments.
Enforcement Directorate Hyderabad: The Enforcement Directorate Hyderabad (ED) videits Provisional Attachment Order dated July 22 2014 attached to the extent of '138.59crores in respect of the investment made by the Company in the share capital of NavaBharat Energy India Limited and the said Provisional Attachment Order was also confirmedby the Adjudicating Authority under Prevention of Money Laundering Act 2002 vide Orderdated May 20 2015.
Subsequently the ED issued a letter dated July 9 2015 to Nava Bharat Projects Limitedrequesting to transfer entire 739999994 equity shares of '2/- each of face value ofNava Bharat Energy India Limited held by the Company within one week. Against the saidconfirmation Order of the Adjudicating Authority and letter dated July 9 2015 of ED anappeal was filed before the Appellate Tribunal constituted for hearing the appeals againstthe Order of the Adjudicating Authority under PMLA. The Appellate Tribunal granted stayagainst operation of the Letter dated July 9 2015 subject to certain conditions videOrder dated July 30 2015 and the said stay has been extended from time to time untilAugust 28 2017 on which date the appeal stands posted for final hearing.
BRAHMANI INFRATECH PRIVATE LIMITED (BIPL)
BIPL is a subsidiary of the Company with 65.74% equity stake. Following the surrenderof land of SEZ back to the Government BIPL has been engaged in investments in urban landsand properties to diversify its portfolio and to pursue urban infrastructural development.
Following the cessation of SEZ activity and surrender of land BIPL has been embroiledin protracted litigation including Arbitration of disputes with Mantri Group itsCodeveloper and Technical Associate for SEZ.
The Arbitration Award by the Hon'ble Arbitrator is currently being disputed by BIPL andMantri Group on separate grounds and is sub-judice.
Mantri Technology Parks Private Limited (MTPPL) sought for injunction restraining theasset management company / mutual funds in repaying to the Company on maturity before theCivil Courts Hyderabad OP No 571/2015 under Section 9 of the Arbitration andConciliation Act 1996. The Company is contesting the same and is sub-judice.
BIPL and MTPPL both have filed cross applications before Civil Court Hyderabad seekingreliefs against each other in setting aside the Arbitration Award no. 2/2013 under Sec 34of the Arbitration and Conciliation Act 1996 with regard to such portion of the Awardfavouring other party.
CLB matter: The Company Petition no. 42 of 2011 and its associated Applications CA140 & 141 of 2012 filed by Malaxmi Infra Ventures Pvt. Ltd. one of the shareholders ofBIPL in Company Law Board Chennai Bench were transferred to National Company LawTribunal Hyderabad Bench. The Hon'ble Hyderabad Bench vide its Order dated January 312017 held that the transaction for the cancellation of the land in question by APIIC isbonafide one and it is in the best interest of the BIPL and the same is legal. InterimOrders dated June 10 2011 stand vacated and CA Nos.140 & 141 of 2012 also standdismissed with no order as to costs and BIPL was directed to appoint Mr. Y Harish ChandraPrasad as Director in accordance with its Articles of Association within a reasonabletime. On an Appeal filed by BIPL the Hon'ble National Company Law Appellate Tribunal NewDelhi (NCLAT) seeking to set aside the Order to the extent of direction to appoint Mr. YHarish Chandra Prasad as director on the Board of BIPL. The Appeal was and the saidimpugned direction was set aside on April 17 2017.
NAVA BHARAT REALTY LIMITED AND NAVA BHARAT SUGAR AND BIO FUELS LIMITED
Both Nava Bharat Realty Limited and Nava Bharat Sugar and Bio Fuels Limited appliedfor strike off from the register of companies as there have been no operations in theseCompanies. They have therefore ceased to be subsidiaries of the Company.
KINNERA POWER COMPANY PVT. LTD (KPCPL) (Associate Company)
KPCPL is an associate of the Company with 26% equity stake and continues to hold thesame as specified by National Highway Authorities of India (NHAI). As per the professedintention and there being no economic interest the Company plans to fully off-load itsstake in KPCPL in favour of Meenakshi Infra Group in due course as per the regulations.Accordingly no economic interest from KPCPL is being factored in the consolidatedfinancials nor the accounts of KPCPL appended in the Annual report of the Company.
OUTLOOK AND FUTURE PLANS
"Management Discussion and Analysis" contains a section on the Company'soutlook and future plans and members may please refer the same on this.
CHANGE IN THE NATURE OF BUSINESS
There has been no change in the nature of business of the Company during the year underreview.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
In accordance with the provisions of Section 134 (3) (m) of the Companies Act 2013read with Companies (Accounts) Rules 2014 the required information relating toconservation of energy technology absorption and foreign exchange earnings and outgo havebeen enclosed as Annexure - 2 to this Report.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your Company is committed towards betterment of society and protection of environmentwith constant efforts to build and nurture long lasting relationships with the society.Further the Company's CSR initiatives/ activities aim at improving quality of life of thecommunities and stakeholders in general and communities around the Company's manufacturingfacilities in particular and to contribute towards economic development of the societyfrom which your Company draws resources for its operations.
Your Company continue to remain focused on improving the quality of life and engagingcommunities through education livelihood health drinking water and sanitationenhancing vocational skills empowering women etc. During the year under review theCompany spent over Rs.320 Lakhs on CSR activities. The annual report on CSR activities interms of Section 135 of the Companies Act 2013 read with rule 8 of Companies (CorporateSocial Responsibility Policy) Rules 2014 is enclosed as Annexure - 3 to thisReport.
EXTRACT OF ANNUAL RETURN
In accordance with Section 134(3)(a) of the Companies Act 2013 an extract of theannual return in the prescribed format is enclosed as Annexure - 4 to this Report.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
The particulars of contracts or arrangements with related parties referred to insub-section(1) of Sec.188 in Form No. AOC-2 pursuant to clause (h) of sub-section(3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules 2014 areenclosed as Annexure - 5 to this Report.
The policy on materiality of related party transactions and also on dealing with therelated party transactions as approved by the Audit committee and the Board of directorswas placed on the website of the Company under the web link:http://www.nbventures.com/corporate_policies.htm
PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS
The details of loans given guarantees provided and investments made during theFinancial Year ended on March 312017 are enclosed in Annexure - 6 to this Reportin compliance with the provisions of Section 186 of the Companies Act 2013 read with theCompanies (Meetings of the Board and its Powers) Rules 2014. The particulars of aggregateloans guarantees and investments under Section 186 of the Companies Act 2013 aredisclosed in Financial Statements which may be read as part of this Report.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report for the year under review as stipulatedunder Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 (SEBI LODR) is presented in a separate section forming part of this Report.
BUSINESS RESPONSIBILITY REPORT
As per regulation 34(f) of SEBI LODR the annual report shall contain businessresponsibility report (BRR) describing the initiatives taken by the Company fromenvironmental social and governance perspective. However SEBI having regard to the greeninitiative clarified vide its press release dated November 30 2015 that the Company canplace BRR on its website and provide website link for the same in the annual report.Accordingly the BRR is made available on the Company's website athttp://www.nbventures.com/ corporate_policies.htm
Your Company is committed to achieve the highest standards of Corporate Governance andadheres to the Corporate Governance requirements set by the Regulators/ applicable laws.
A separate Report on Corporate Governance as stipulated under Regulation 34(3) of SEBI(LODR) Regulations 2015 is attached hereto as a part of this report. The report onCorporate Governance also contains certain disclosures required under the Companies Act2013.
Disclosure under Reg. 34(3) & Schedule V of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015.
Related Party disclosure as per Schedule V of SEBI (LODR) Regulations 2015
| || || || ||(Rs. in lakhs) |
|S. No ||In the accounts of ||Particulars ||Amounts at the year ended 2016-17 ||Maximum Amount of Loans/Advances/Investments outstanding during the year 2016-17 |
|1 ||Nava Bharat Ventures Limited (NBVL) (Holding Company) ||Loan Given to:- Nava Bharat (Singapore) Pte. Ltd. (Wholly Owned Subsidiary of NBVL) ||46364.18 ||51343.75 |
|2 ||Nava Bharat Ventures Limited (Holding Company) ||Investment by the Loanee i.e. Nava Bharat (Singapore) Pte. Ltd. (Wholly owned Subsidiary of NBVL) || || |
| || ||In the shares of subsidiary companies i.e. 1. Maamba Collieries Limited ||83828.68 ||83828.68 |
| || ||2. Nava Energy Zambia Limited ||0.58 ||0.58 |
The Board of directors of the Company has a combination of Executive Non-Executive andIndependent Directors. The Board comprises nine directors of which five constituting morethan half of the total strength are Non-Executive and Independent Directors.
INDEPENDENT AND NON-EXECUTIVE DIRECTORS
As prescribed under LODR Regulations and as per Section 149(6) of the Companies Act2013 the particulars of Non Executive and Independent Directors are as under:
Mr. K. Balarama Reddi Dr. E.R.C. Shekar Dr. M.VG. Rao Dr. D. Nageswara Rao and Dr.C.V Madhavi.
They were appointed as Independent Directors by the shareholders at 42nd AGM on August08 2014 for a term of 5 (five) years.
Mr. D. Ashok Mr. P. Trivikrama Prasad Mr. GRK Prasad and Mr. CV Durga Prasad
None of the directors on the Board is a member of more than ten Committees across allthe Companies in which directorship is held. Necessary disclosures regarding committeepositions in other public companies as on March 31 2017 have been made by the Directors.
DECLARATIONS OF INDEPENDENT DIRECTORS
The independent directors declared pursuant to section 149(7) of the Companies Act2013 affirming that they meet the criteria of independence as provided in subsection (6)of section149 of the Companies Act 2013.
CHANGES IN DIRECTORS AND KEY MANAGERIAL PERSONNEL:
During the year under review there was no change in the constitution of the Board.
However Mr. P.Trivikrama Prasad was re-appointed as Managing Director by the memberswith effect from March 19 2017 for a period of 5 years at the Annual General Meeting heldon August 24 2016.
Mr. M. Subrahmanyam Company Secretary & Vice President retired on attainingsuperannuation and Mr. VSN Raju was appointed as Company Secretary & Vice Presidentwith effect from June 1 2016.
DIRECTORS RETIRING BY ROTATION
Pursuant to the provisions of the Companies Act 2013 Mr. G.R.K Prasad retires at theAGM and being eligible offered himself for re-appointment.
NUMBER OF MEETINGS OF THE BOARD
Regular meetings of the Board are held to discuss and decide on various businesspolicies strategies and other businesses. The schedule of the Board /Committee meetingsare circulated to the Directors in advance to enable them to plan their schedule forparticipation in the meetings.
The Board met seven (7) times during the FY 2016-17 viz. on May 30 2016 July 222016 August 24 2016 September 7 2016 November 17 2016 January 30 2017 and March10 2017.
PERFORMANCE Evaluation OF THE BOARD
Pursuant to the provisions of the Companies Act 2013 and SEBI (LODR) Regulations2015 the Board has carried out annual performance evaluation of its own performance theDirectors individually as well as the working of its Audit committee Nomination andRemuneration committee Corporate Social Responsibility committee and StakeholdersRelationship committee.
A structured set of criteria was adopted after taking into consideration the inputsreceived from the Directors covering various aspects of the Board's functioning such asadequacy of the composition of the Board and its Committees Board culture execution andperformance of specific duties obligations and governance.
Evaluation of the Board Members is conducted on an annual basis by the BoardNomination and Remuneration committee and Independent Directors with specific focus on theperformance and effective functioning of the Board and Individual Directors.
The Nomination and Remuneration committee and the Board of directors had laid downcriteria for performance evaluation of directors Committees and Board as a whole.
Performance indicators for evaluation of Independent Directors:
Independent Directors have three key roles - governance control and guidance. Some ofthe performance indicators based on which the Independent Directors are evaluated are:
Ability to contribute to and monitor corporate governance practices.
Ability to contribute by introducing international best practices to address topmanagement issues.
Active participation in long term strategic planning.
Commitment to the fulfillment of a Director's obligations and fiduciaryresponsibilities.
Attendance: The performance evaluation of Independent or Non-Executive Members isdone by the Board annually based on criteria of attendance and contributions at Board/Committee Meetings as also the role played other than at Meetings.
The evaluation process also considers the time spent by each of the Board Members corecompetencies personal characteristics accomplishment of specific responsibilities andexpertise.
The Company adopted a policy relating to the remuneration. This Policy covers theremuneration and other terms of employment for the Company's Executive Team. Theremuneration policy for Members of the Board and for Management aims at improving theperformance and enhancing the value of the Company by motivating and retaining them and toattract the right persons to the right jobs in the Company. The object of thisRemuneration Policy is to make your Company a desirable workplace for competent employeesand thereby secure competitiveness future development and acceptable profitability. Inorder to achieve this it is imperative that the Company is in a position to offercompetitive remuneration in all its operational locations.
Neither the Managing Director nor any Whole-time Director of the Company received anyremuneration or commission from any of its Subsidiaries.
A detailed policy on remuneration of the Directors and Senior Management is placed onthe Company's website under the weblink: http://www.nbventures.com/corporate_ policies.htmalso enclosed as Annexure - 7 to this Report.
POLICY FOR SELECTION OF DIRECTORS AND DETERMINING DIRECTORS Rs.INDEPENDENCE
The Nomination and Remuneration committee identifies persons who are qualified tobecome directors and who may be appointed in senior management in accordance with thecriteria laid down and recommend to the Board their appointment and removal.
THE CRITERIA FOR THE APPOINTMENT OF DIRECTORS KMPS AND SENIOR MANAGEMENT
A person for appointment as director KMP or in senior management should possessadequate qualification expertise and experience for the position considered forappointment. The Committee decides whether qualification expertise and experiencepossessed by a person are sufficient for the concerned position. The committee ascertainsthe credentials and integrity of the person for appointment as director KMP or seniormanagement level and recommends to the Board his / her appointment.
The Committee while identifying suitable persons for appointment to the Board willconsider candidates on merit against objective criteria and with due regard for thebenefits of diversity on the Board.
The Nomination and Remuneration committee shall assess the independence of directors atthe time of appointment; re-appointment and the Board shall assess the same annually. TheBoard shall re-assess determination of independence when any new interests orrelationships are disclosed by a Director.
The criteria of independence are determined as laid in the Companies Act 2013 and SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015.
The Independent Directors shall abide by the Code for independent directors asspecified in Schedule IV of the Companies Act 2013.
COMMITTEES OF THE BOARD
Currently the Board has four committees: The Audit committee Nomination andRemuneration Committee Corporate Social Responsibility Committee and StakeholdersRelationship Committee.
A detailed note on the Board and its Committees is provided under the CorporateGovernance Report section in this Report. The Composition of the Committees andcompliances as per the applicable provisions of the Act and Rules are as follows:
|Name of the Committee ||Composition of the Committee ||Remarks |
|Audit Committee ||Mr. K Balarama Reddi Chairman ||The Audit committee of the Board of directors was constituted in conformity with the requirements of Section 177 of the Companies Act 2013 and SEBI (LODR) Regulations and its role has been the same as stipulated in the Act and the Regulations mentioned above. |
| ||Dr. M.VG.Rao Member || |
| ||Dr. D.Nageswara Rao Member || |
| || ||All recommendations made by the Audit committee during the year were accepted by the Board. |
|Nomination and ||Mr. K Balarama Reddi Chairman ||The Nomination and remuneration committee of the Board of directors was constituted in conformity with the requirements of Section 178 of the Companies Act 2013 and Regulation 19 of SEBI (LODR) Regulations 2015 and its role has been the same as stipulated in the Act and the Regulations mentioned above. |
|Remuneration Committee ||Dr. M.VG.Rao Member || |
| ||Dr. D. Nageswara Rao Member || |
|Corporate Social ||Mr. D.Ashok Chairman ||The Corporate Social Responsibility committee of the Board of directors was constituted in conformity with the requirements |
|Responsibility Committee ||Dr. D.Nageswara Rao Member || |
| ||Dr. C.VMadhavi Member ||The Committee monitored the implementation of the CSR Policy from time to time. |
|Stakeholders ||Mr. K Balarama Reddi Chairman ||The Stakeholders Relationship committee of the Board of directors was constituted in conformity with the requirements 20 of SEBI (LODR) Regulations 2015 and its role has been the same as stipulated in the Act and the Regulations mentioned above. |
|Relationship Committee ||Mr. P Trivikrama Prasad Member || |
| ||Dr. M.VG.Rao Member || |
PARTICULARS OF EMPLOYEES
The names and other particulars of employees in accordance with the provisions ofSection 197(12) of the Companies Act 2013 read with Rule 5(1) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 are enclosed as Annexure- 8 to this Report.
Particulars of every employee employed throughout the financial year and in receipt ofremuneration of Rupees One Crore and Two lakhs or more or employed for part of the yearand in receipt of Rs.8.50 lakhs or more per month under Rule 5(2) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 are enclosed as Annexure-9 to this Report.
NAVA BHARAT VENTURES GENERAL EMPLOYEES BENEFITS SCHEME
Nava Bharat Ventures Employee Welfare Trust (established vide Indenture of Trust datedJanuary 25 2012) has been reconstituted and aligned with the SEBI (Share Based EmployeeBenefits) Regulations 2014 by suitably amending the Trust Deed in line with theRegulations and General Employees Benefits Scheme with the current Regulations fallingunder Part D of the Regulations in accordance with the Special Resolution passed by themembers in the 43rd Annual General Meeting held on August 27 2015.
The scheme is in compliance of SEBI (Share Based Employee Benefits) Regulations 2014as applicable. The Scheme is implemented as specified by SEBI in the Regulations.
Presently the Trust holds 1.57% of the total paid up share capital of the Company ason March 31 2017. Since Shares constitute about 91.52% of the total assets held by theEWT for GEBS the Company and the Trust have to dispose of the surplus shares over andabove 10% of its total assets which the Trust can retain in accordance with SEBIRegulations before October 28 2019.
The Company and the Trust shall after retaining 28838 shares which it is eligible toretain under the Regulations have to sell the surplus 2771162 shares within a period offive years from the date of the Regulations i.e. before October 28 2019.
Auditor's Certificate pursuant to Regulation 13 of SEBI (Share Based Employee Benefits)Regulations 2014 in respect of Nava Bharat Ventures General Employee Benefits Scheme2015 would be placed in the meeting.
The prescribed details are disclosed on the Company's website under the link:http://www.nbventures.com/ corporate_policies.htm
The Trustee shall not be eligible to exercise voting rights in General Meetings on theshares of the Company held by the Trust.
Pursuant to Rule 16 of Companies (Share Capital and Debentures) Rules 2014 it isdisclosed that the Trustee abstained from voting at the AGM held on August 24 2016.
EMPLOYEES Rs.STOCK OPTION SCHEME
During the year under review no employee stock options were granted. No ESOPs werealso exercised as there were no outstanding options as at the beginning of the year.
DIRECTORS Rs.RESPONSIBILITY STATEMENT
Directors confirm that:
(a) in the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;
(b) they selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the company at the end of the financial year and of the profitand loss of the company for that period;
(c) they took proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of thecompany and for preventing and detecting fraud and other irregularities;
(d) they prepared the annual accounts on a going concern basis;
(e) they laid down internal financial controls to be followed by the company and thatsuch internal financial controls were adequate and operating effectively; and
(f) they devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems were adequate and operating effectively.
STATUTORY AUDITORS & AUDITOR'S REPORT
M/s. Brahmayya & Co. Chartered Accountants Hyderabad the Statutory Auditors ofthe Company holds office till the conclusion of the ensuing Annual General Meeting (AGM).They were appointed as Auditors of the Company during the transitional period of 3 yearsat the 42nd AGM held on August 8 2014 subject to ratification by the members at every AGMheld after 42nd AGM. Their appointment was ratified at the 43rd and 44th AGM held onAugust 27 2015 and August 24 2016 till the conclusion of next AGM (44th and 45th AGM)respectively.
Certain figures forming part of the statement of assets and liabilities for the yearsended March 31 2016 and 2017 filed by the Company with stock exchanges earlier have beenfurther reclassified by the statutory auditors in the accompanying financial statementsfor better clarity under IND-AS regulations. This has no impact on the reported financialpositions.
The Auditors Rs.Report on the financial statements of the company for financial yearended March 31 2017 does not contain any reservation qualification or adverse remarksand their report together with notes to Financial Statements are self-explanatory andhence do not call for any further comments under Section 134 of the Companies Act 2013.
The term of the existing statutory auditors (M/s. Brahmayya & Co) expired and thetransitional period of 3 years as allowed under the Act will also expire at the conclusionof 45th AGM of the Company.
The Board of directors upon the recommendations of Audit committee recommended theappointment of M/s. Walker Chandiok & Co. Chartered Accountants (Firm Regn. No.001076N / N500013) for a period of 5 years as the auditors of Company from the conclusionof 45th AGM till the conclusion 50th AGM subject to the approval of shareholders at the45th AGM and ratification every year thereafter in compliance with the mandatory rotationof statutory auditors as required under Companies Act 2013.
The Board appointed M/s. Narasimha Murthy & Co. Cost Accountants as Cost Auditorsfor conducting the audit of cost records of the Company for Sugar Industrial AlcoholSteel (Ferro Alloys) and Electricity for the Financial Year 2016-17 on the recommendationsof the Audit committee. The same was ratified by the Members at the 44th Annual GeneralMeeting held on August 24 2016.
The Cost Audit reports for FY 2015-16 were filed with Ministry of Corporate Affairs onSeptember 12 2016.
Further the Board of directors based on the recommendations of the audit committeeappointed M/s. Narasimha Murthy & Co. Cost Accountants as Cost Auditors forconducting the audit of cost records of the Company for Sugar Industrial Alcohol Steel(Ferro Alloys) and Electricity for the FY 2017-18 and their remuneration be subject toratification of members at the ensuing AGM.
INTERNAL AUDITORS FOR COSTING SYSTEMS AND COST ACCOUNTING RECORDS
M/s. Sagar & Associates Internal Auditors conducted internal audit of cost recordsfor the Financial Year 2016-17.
The Board appointed M/s Sagar & Associates as Internal Auditors for conduct ofinternal audit of cost records for the Financial Year 2017-18.
As per the provisions of Section 204 of the Companies Act 2013 the Board of directorsappointed M/s.PS.Rao & Associates Practicing Company Secretaries to conductsecretarial audit pursuant to the recommendations of the Audit committee for the FinancialYear 2016-17.
The Secretarial Audit Report for the financial year ended March 31 2017 issued byPracticing Company Secretary is enclosed as Annexure - 10 to this Report and doesnot contain any reservation qualification or adverse remarks.
Further the Board appointed M/s.PS.Rao & Associates Practicing CompanySecretaries to conduct secretarial audit pursuant to the recommendations of the Auditcommittee for the FY 2017-18.
MATERIAL CHANGES AND COMMITMENTS
There have been no material changes and commitments in the business operations of theCompany from the financial year ended March 31 2017 to the date of the signing of theDirectors Rs.Report.
MATERIAL ORDERS PASSED BY THE REGULATORS
No significant and material orders were passed by the Regulators or courts or tribunalsimpacting the going concern status and company's operations in future except as statedotherwise.
All the properties of the Company including buildings plant and machinery and stockshave been adequately insured.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS
The Company has an Internal Control System commensurate with the size scale andcomplexity of its operations. The Company maintains all its records in SAP system and thework flow and approvals are routed through SAP
The Internal Audit Department monitors and evaluates the efficacy and adequacy ofinternal control system in the Company its compliance with operating systems accountingprocedures and policies at all locations of the Company and its subsidiaries. Based on thereport of internal audit function the Units undertake corrective action in theirrespective areas and strengthen the controls.
Significant audit observations and corrective actions thereon are presented to theAudit committee of the Board periodically.
The Board of directors of the Company have adopted various policies like related partytransactions policy whistle blower policy policy to determine material subsidiaries andsuch other procedures for ensuring orderly and efficient conduct of its business forsafeguarding its assets prevention and detection of frauds and errors accuracy andcompleteness of the accounting records and timely preparation of reliable financialinformation.
TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND
Pursuant to the provisions of Section 205A of the Companies Act 1956 (Sec. 124 (5) ofthe Companies Act 2013) an amount of Rs.2814480/- relating to FY 2008-09 whichremained unclaimed for a period of 7 years had been transferred by the Company on August31 2016 to the Investor Education and Protection Fund and credited on September 02 2016.
The Company established a vigil mechanism for directors and employees to report genuineconcerns pursuant to Sec. 177 of the Companies Act 2013. The vigil mechanism provided foradequate safeguards against victimisation of employees who use such mechanism and fordirect access to the chairperson of the Audit committee in appropriate or exceptionalcases.
The policy lays down the mechanism for making enquiry into whistle blower complaintreceived by the Company. Employees who may become aware of any alleged wrongful conductare encouraged to make a disclosure to the Audit committee.
The details of such mechanism are communicated to all the directors and employees andit was also disclosed on the website of the Company http://www.nbventures.com/corporate_policies.htm
RISK MANAGEMENT POLICY
The Board formulated and implemented Risk Management Policy for the Company whichidentifies various elements of risks which in its opinion may threaten the existence ofthe Company and measures to contain and mitigate risks. The Company has adequate internalcontrol systems and procedures to combat the risk. The Risk Management procedures arereviewed by the Audit committee and the Board on periodical basis.
DIVIDEND DISTRIBUTION POLICY
In compliance with the Regulation 43A of Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations 2016the Board formulated Dividend Distribution Policy for the Company and policy applies tothe distribution of dividend by the Company in accordance with the provisions of theCompanies Act 2013 ("Act") and the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 (SEBI Regulations).
The Dividend Distribution Policy is enclosed as Annexure -11 to this Report andalso placed on the Company's website under the weblink:http://www.nbventures.com/corporate_ policies.htm
INDUSTRIAL SAFETY AND ENVIRONMENT
Utmost importance continues to be given to the safety of personnel and equipment in allthe plants of the Company. The Company reviews thoroughly the various safety measuresadopted and takes effective steps to avoid accidents. Safety drills are also conducted atregular intervals to train the employees for taking timely and appropriate action in caseof accidents.
Your Company received the following awards/recognitions during 2016-17:
1. National Award for Excellence in Energy Management 2016 as ExcellentEnergy Efficient Unit from Confederation of Indian Industry (The Odisha Works andSugar Division received this award). NBVL's step down subsidiary NBEIL received the awardas Energy Efficient Unit
"Increased Juice Drainage Area for all the Mills to Improve MillingEfficiency" implemented by Sugar Division recognized by CII as an "InnovativeProject"
2. National Energy Conservation Awards 2016 Certificate of Merit from Bureau ofEnergy Efficiency Govt. of India Ministry of Power (The 114 MW Power Plant at Palonchareceived this certificate)
3. Star Performer - Large Enterprise (Ferro Alloys) for Export Excellence for theyear 2014-15 from EEPCINDIA Southern Region
4. Netmagic Futurist Award for IT - Excellence in Manufacturing Segment focusingon deployment of Next Generation Business Applications from Netmagic India's leadingManaged Hosting and Cloud service provider
GREEN INITIATIVE IN CORPORATE GOVERNANCE BY HON'BLE MINISTRY OF CORPORATE AFFAIRS
The Ministry of Corporate Affairs (MCA) has taken a green initiative in CorporateGovernance by allowing paperless compliances by the Companies and permitted the service ofAnnual Reports and documents to the shareholders through electronic mode subject tocertain conditions and the Company continues to send Annual Reports and othercommunications in electronic mode to the members having email ids.
Industrial relations have been cordial during the year under review and your Directorsappreciate the sincere and efficient services rendered by the employees of the Company atall levels towards successful working of the Company.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITIONAND REDRESSAL) ACT 2013
Your Company has zero tolerance towards sexual harassment at the workplace and thedetails of sexual harassment complaints as per the provisions of the Sexual Harassment ofWomen at Workplace (Prevention Prohibition and Redressal) Act 2013 and the Rulesthereunder are as follows:
|No of complaints received ||: Nil |
|No of complaints disposed off ||: NA |
Your Directors would like to express their grateful appreciation for the assistancepatronage and co-operation received from the Financial Institutions the Company'sBankers Insurance companies the Govt. of India Governments of various countries Govt.of Telangana Govt. of Andhra Pradesh and Govt. of Odisha the State utilities andShareholders during the year under review.
| ||for and on behalf of the Board |
| ||R Trivikrama Prasad |
| ||Managing Director |
|Place : Hyderabad ||D. Ashok |
|Date : May 27 2017 ||Chairman |
Annexure - 2
Particulars of Conservation of Energy Technology absorption Foreign Exchange earningsand outgo pursuant to the Provisions of Section 134 of the Companies Act 2013 read withCompanies (Accounts) Rules 2014
(A) CONSERVATION OF ENERGY:
(i) The steps taken or impact on conservation of energy
I) Sugar Division:
i. Plugging of nozzles of Evaporator Condenser to reduce the water consumptionresulting in energy savings.
ii. Utilization of waste heat in Spent lees from distillery exhaust column (Qty-1.5cu.m at 110 deg.c) for preheating the process condensate from 40 deg.c to 70 deg.c in PHEfor stripping of Ammonical nitrate in stripper column resulting in reduced steamconsumption and thereby energy savings.
Due to the measures taken as mentioned above the total estimated savings were 50000kWh per year in energy and 150 tonnes per year in coal consumption.
II) Power Division:
Power Plant (Telangana)
Installation of Waste Heat Recovery System-3 to recover the waste heat available inexit flue gases of furnace-3 of FAP. This waste heat is utilized for heating feed water inSTG-3 regenerative system.
Power Plant (Odisha)
i. Utilization of existing VFD of ID fan of Unit-1 for VAM chilled water pump-1resulting in energy savings.
ii. Reducing the bed ash conveying time from 90 sec to 70 sec and increasing vesselpressure from 0.4 to 0.5 kg/cm2 of bed ash conveying system in Unit- 2resulting in energy savings at AHP Compressor.
iii. Modification and providing thermal insulation around hopper heaters of ESP 1&2in Unit-2 resulting in energy savings.
iv. Performance evaluation and replacing damaged APH tubes of Boiler 1 & 2 inUnit-2 resulting in improving APH performance boiler efficiency and ID fan energysavings.
v. Utilizing trans vector nozzles for cleaning of silo vent filter bags resulting inenergy savings.
vi. Normalizing the turbine heat rate Condenser vacuum and specific steam consumptionof Unit-2 (60 MW CPP) by eliminating deterioration of condensate water quality arrestingthe water leakage from bottom of the turbine casing and arresting the leakage from HPheater-2 stuffing box resulting in energy savings.
III) Ferro Alloy Division
i Installation of 165 nos. of LED luminaires at Furnace floors Raw Material Handlingand Batch Weighing system areas.
ii. Replacement of 4 nos. of window air conditioners with inverter type airconditioners at training hall and PLC room of Gas Cleaning Plant.
iii. Reduction in duration of the cleaning cycle of Gas Cleaning Plant 3 and provisionof Variable Frequency Drive (VFD) to 150HP Reverse Air (RA) fan motor.
iv. Operating of 2 nos. of 150HP pumps instead of 1No. each of 300HP & 150HP pumpsby regulating the outlet valves of water cooling system of furnaces-1 and 3 andmaintaining the water pressure and temperature within the acceptable range.
i. Connecting tapping smoke blower-2 through common duct in Furnace-2 for the coolingof charging chutes and sealing of electrodes over the smoke hood eliminated the operationof individual blowers and resulted in conservation of electrical energy.
ii. Installation of Variable Frequency Drives for Furnace-2 tapping smoke blowerresulting in conservation of electrical energy.
iii. Replacement of 35 nos. of 250 Watt Metal Halide Lamps with 45 Watt LED lamps inplant area lighting resulted in to conservation of electrical energy.
iv. Installation of Variable Frequency Drive for MRP slurry pump resulting inconservation of electrical energy.
v. Installation of 2 nos. of Variable Frequency Drive along with Energy Efficientmotors for Cooling Towers resulting in conservation of electrical energy.
vi. Installation of Variable Frequency Drives for Furnace-1 tapping smoke blowerresulting in conservation of electrical energy.
vii. Optimization of briquetting plant operations by simultaneous operation of Mullermixer and Alfa mixer resulting in conservation of electrical energy.
The total estimated savings on account of the various measures taken at all Units puttogether were 957583 kWh per year in energy and 3610 tonnes per year in coal consumption.
(ii) The steps taken by the Company for utilizing alternate sources of energy
I) Sugar Division/Power Division/Ferro Alloy Division (Telangana)
II) Ferro Alloy Division - Odisha:
Agreement executed with Bharat Petroleum Company Ltd for the installation of LPG-LOTmanifold system and supply of LPG in 44.6 kg cylinders for replacing furnace oil forDryer-2 burner. This will improve environment (no smoke emission to atmosphere) workingconditions and overall efficiency of dryer.
(iii) The capital investment on energy conservation equipments
I) Sugar Division:
II) Power Division:
Power Plant (Telangana)
Rs.549.5 lakhs investment made for installation of Waste Heat Recovery Sytem-3.
Power Plant (Odisha)
III) Ferro Alloy Division:
i. Rs.6.2 lakhs on procurement of LED lighting Luminaires.
ii. Rs.2.16 lakhs on procurement of inverter type air conditioners.
iii. Rs.5.6 lakhs for VFD.
iv. Rs.1.5 lakhs on procurement of valves for regulating the furnace cooling water.
i. Rs.5.5 lakhs for the arrangement of duct to connect tapping smoke blower to chargingchutes and electrode seals in Furnace-2.
ii. Rs.1.98 lakhs on installation of VFD for Tapping Smoke Blower of Furnace-2.
iii. Rs.1.91 lakhs for installation of LED lights.
iv. Rs.1.93 lakhs on installation of VFDs for MRP slurry pump.
v. Rs.2.0 lakhs on installation of VFDs and energy efficient motors for 2 nos. ofCooling Towers.
vi. Rs.2.0 lakhs on installation of VFD for Furnace -1 Tapping Smoke Blower.
(B) TECHNOLOGY ABSORPTION:
(i) The efforts made towards technology absorption
I) Sugar Division:
Installation of 1No. of web camera at discharge point of sugar ETP treated effluent and2 Nos. of web cameras at Distillery bio composting yard as per the CPCB guidelines andconnection to PCB server.
II) Power Division:
Power Plant (Telangana)
i. Replacement of damaged bladder of Hydraulic accumulator in lube oil governing systemof STG-2 with indigenously developed one.
ii. Installation of Dust extraction systems at CHP-1 & 2.
Power Plant (Odisha)
i. Conducting the compressed air leak test with leak detector and rectifying theidentified abnormalities in Unit-2 Boiler and TG area.
ii. Conducting insulation survey and rectifying the identified weak insulation areas inUnit-2 Boiler and TG area.
iii. Installation of flow meters in service water line and DM make up line of Unit-2.
iv. Providing atomizing water spray nozzles at coarse ash Silo in Unit-1.
v. Installation of airline respirator system for handling chlorine gas in Chlorineshed.
vi. Installation of de-humidifier in Unit-3 (60 MW IPP).
III) Ferro Alloy Division:
i. Installation of de-dusting facility at Raw Material Handling System of Furnace-4.
ii. Upgradation of batch weighing system by replacing outdated weighing instruments andmodifying PLC logics.
iii. Installation of Opacity monitor for Gas Cleaning Plant-2.
iv. Replacement of bag house of Sinter Plant-1 with Ventury Scrubber.
v. Installation of rain guns at sinter plant and extension of the water sprinklersystem at Raw Material yard by providing 3 more rain guns.
vi. Provision of pressure transmitters instead of manometers to Bag house chambers ofGas Cleaning Plant-3.
vii. Installation of Radio remote control for 5Ton and 20Ton EOT cranes at FinishedProduct shed.
i. Installation of PVC solid woven belts in briquetting plant with mechanicalfasteners.
ii. Installation of LPG - LOT manifold system for chrome ore dryers for heating of ore.
iii. Introduction of JCB mounted hydraulic rock breaker for breaking of FeCr metalcakes.
iv. Introduction of Pneumatic breaker attached to articulated hydraulic boom forbreaking of skull from brick lined ladles.
v. Introduction of Refractory brick lined ladles for collection of hot metal.
vi. Introduction of Inverter based welding machines.
vii. Measuring and monitoring of compressed air utilization.
viii. Installation of Dry Fog System at ground hoppers & screen houses in RawMaterial Handling areas.
(ii) The benefits derived like product improvement cost reduction product developmentor import substitution
I) Sugar Division:
Monitoring of discharge water quality at Sugar ETP and Compliance of Zero liquiddischarge at distillery bio compost yard.
II) Power Division:
Power Plant (Telangana)
i. Cost savings due to import substitution.
ii. Control of dust emissions.
Power Plant (Odisha)
i. Reduction in energy consumption of compressor.
ii. Minimized heat loss due to radiation.
iii. Monitoring of water consumption.
iv. Suppression of fugitive dust.
v. Improved safety during handling of chlorine gas.
vi. Maintenance of moisture within limit preventing rust & corrosion developmentand for effective preservation of Turbine.
III) Ferro Alloy Division:
i. Improvement in environment conditions.
ii. Accurate and robust operation.
iii. Online monitoring of flue gas SPM level as per the norms of State PollutionControl Board.
iv. Improvement in environment conditions.
v. Suppression of dust during handling of raw material by utilizing waste water.
vi. Effective and continuous monitoring of individual bag house pressures.
vii. Safe operation of EOT cranes.
i. PVC solid woven belts introduced in briquetting plant with mechanical fastenersreduced the energy requirement and procurement cost of the belts.
ii. LPG-LOT manifold system for chrome ore dryers has reduced pollution.
iii. JCB mounted hydraulic rock breaker resulted in easy handling and processing ofFeCr.
iv. Pneumatic breaker attached to articulate hydraulic boom reduced ladle cost.
v. Refractory brick lined ladles reduced cost of ladles.
vi. Inverter based welding machines reduced energy consumption.
vii. Measuring and monitoring of compressed air utilization led to better control.
viii. Fugitive emissions at ground hoppers & screen houses in Raw Material Handlingareas are controlled.
(iii) In case of imported technology (imported during the last three years reckonedfrom the beginning of the financial year)
I. Sugar Division/Power Division/Ferro Alloy Division:
|(a) The details of technology imported : ||NIL |
|(b) The year of import : ||Not Applicable |
|(c) Whether the technology been fully absorbed : ||Not Applicable |
|(d) If not fully absorbed areas where |
absorption has not taken place and the reasons thereof :
|Not Applicable |
(iv) The expenditure incurred on Research and Development
I. Sugar Division/Power Division/Ferro Alloy Division:
(C) FOREIGN EXCHANGE EARNINGS AND OUTGO:
| || ||( Rs.in lakhs) |
| ||Current Year 31.03.2017 ||Previous Year 31.03.2016 |
|Foreign Exchange Outgo: || || |
|i. CIF value of Imports ||12248.88 ||4624.25 |
|ii. Interest ||253.67 ||39.81 |
|iii. Others ||82.31 ||44.32 |
|Foreign exchange Earnings at FOB Value || || |
|i. Export of Goods ||16826.15 ||15246.45 |
|ii. Others ||5902.64 ||3217.51 |
| ||for and on behalf of the Board |
| ||P. Trivikrama Prasad |
| ||Managing Director |
|Place : Hyderabad ||D. Ashok |
|Date : May 27 2017 ||Chairman |